This might not be one of my more popular blog posts with Realtors, but there is a harsh reality to face. The days of six percent Realtor commission is in real trouble. As a real estate agent no matter the market, you are likely already fighting for your full 3%. In the DC/Northern Virginia market, 2.5% (or less) is very much normal. There are many factors that go into why Realtors are being asked to lower commissions and I will dig into them shortly. The truth of the matter is technology and other factors start to erode profits and how others make money. We have seen this in other industries. The mortgage industry, for example, was completely revamped after the housing crash. The main changes were in terms of mortgage pricing and how loan officers received compensation. I feel the same type of change is already occurring in the real estate industry.
Creating “loyalty” in almost anything these days can be hard. Why? Because we have so many options to work with people than ever before. To create that outstanding client loyalty in real estate is even harder. Thousands of Realtors in every major market, and most people who purchased a home, don’t even remember the Realtor who sold them the house a few years later. Tough to get repeat and referral business when your own clients don’t remember you. Let’s also not forget that with the internet options to pick and find a Realtor, and companies like Redfin running TV ads….Wow! In today’s world, creating client loyalty in real estate, lending, Title, and many other fields is becoming an increasing challenge. It can be done and here are several ways how.